Chris Downie, Peak 10’s current CEO, will become CEO of the combined company, while Nancy Phillips, CEO of ViaWest, will become the executive chair of the board of the combined company.

Peak 10, a portfolio company of GI Partners, is acquiring ViaWest for $1.7 billion in cash from Shaw, creating a large data center provider with access to over 20 domestic and international markets.

By having this greater scale, Peak 10 can more effectively challenge not only larger traditional colocation providers like Equinix, but also traditional telcos like CenturyLink and Verizon, which have sold off their colocation facilities.

ViaWest's owner Shaw Cable is the latest member of the broader service provider community exit the data center business. ViaWest's owner Shaw Cable is the latest member of the broader service provider community exit the data center business. After acquiring ViaWest in 2014, the cable MSO said it has seen the business grow quickly, with strong results.

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GI Partners, a former ViaWest investor, acquired Peak 10 in 2014 and will remain the majority shareholder of the combined company.

Similar to Digital Realty’s just announced deal to acquire DuPont Fabros, Peak 10’s acquisition of ViaWest is also about scale. The move also reflects the ongoing expansion and consolidation of the data center market.

Upon completing the acquisition, the combined company’s operations will span 20 domestic and international markets including 18 U.S. cities as well as two international locations—Amsterdam and Calgary.

Peak 10 said that the increased scale and broad geographic coverage will enable the combined company to serve its customers across an enhanced platform of products and capabilities.

At the same time, each of the companies’ 4,400 customers will benefit from a broader choice of colocation, connectivity, private and public cloud utilities, as well as advanced managed solutions.

Chris Downie, Peak 10’s current CEO, will become CEO of the combined company, while Nancy Phillips, CEO of ViaWest, will become the executive chair of the board of the combined company.

"This transformative transaction will expand our scale and geographic reach and we are excited to bring together two companies with cohesive operating philosophies and complementary strengths,” Downie said in a release.

After meeting customary closing conditions, the transaction is anticipated to close in the third quarter of 2017. DH Capital acted as financial advisor and Paul Hastings LLP acted as legal counsel to Peak 10 and GI Partners.